A. Problem Analysis

1. What was the problem before the implementation of the initiative?

Cape York Peninsula is a large (137,000km2) remote area located in Far North Queensland, Australia. It has a population of about 18,000 people, with approximately 60% of the residents identifying as being of Aboriginal and/or Torres Strait Islander origin (Indigenous) [2011 Census].
It includes a number of Indigenous communities, their remoteness significantly contributing to a lack of economic opportunities, including training and employment. Indigenous economic disadvantage also permeates to other spheres, and remote Indigenous communities can suffer from associated social inequalities.
“Like most Indigenous regions throughout the country, Cape York is a geographical region in crisis:
• Median lifespan is 20 years less than non-Indigenous people.
• Approximately 80% Indigenous unemployment…
• High levels of alcohol-related crime…
• High levels of youth alienation.”
Indigenous Enterprise Partnerships. http://www.iep.net.au/capeyork.htm (16.02.2017)
The Queensland Department of Transport and Main Roads (TMR) is responsible for the upgrade and maintenance of 527km of the 570km long Peninsula Developmental Road (PDR). This road is the lifeline of Cape York. As the main transport route, it enables the vital supply of fuel, food and other essentials to the Indigenous communities, and other townships. At the end of 2013, 380km of the 527km (72%) remained unsealed.
During the annual dry season (April – October, approximately), motorists on the PDR endure long stretches of rough surfaces and dusty conditions. During the wet season, Cape York experiences severe storms which causes river crossings to flood, resulting in the repeat closure of sections of the PDR. The remote Indigenous communities which are accessed via the PDR can be cut off from the rest of Australia for between 3 and 6 months. During this time, their only access to essential goods and services is via sea and/or air which is an expensive alternative. When the storms recede, weeks of road grading work is required before the PDR and the community access roads can be reopened and traversed.
On 16 January 2014, the Australian Government announced $210 million in funding to boost the Cape York economy by upgrading key roads and infrastructure to better connect areas of economic opportunity with the local communities. The Queensland Government’s contribution brought the total amount of funds to $260.5 million.
Consultation in 2014 prioritised $200 million to seal sections of the PDR, $50.5 million for much needed community infrastructure in eight of the Cape York-based Indigenous communities, and $10 million for sealing works on the Endeavour Valley Road (EVR). The EVR is another Queensland Government controlled road which connects the Hope Vale Aboriginal community to schools and government services in Cooktown and beyond.
TMR is aware that the nature of our work (building and maintaining the extensive Queensland Government controlled transport network) means we have a significant footprint in regional and remote Queensland. TMR realised we had a unique opportunity to positively influence economic and employment prospects of Indigenous people/communities (in particular) through the delivery of these projects. In the following months, TMR considered how best to maximise the opportunities, the ultimate aim being to ‘Connect Communities, Change Lives’.

B. Strategic Approach

2. What was the solution?

The Queensland Department of Transport and Main Roads (TMR) is proud to state that the $260.5 million Cape York Region Package (CYRP) is much more than a five year program of works to construct road and community infrastructure.
The CYRP has seen TMR use innovative Key Result Areas and incentivised contract payments, to successfully ensure the provision of training, work and business opportunities for the people of Cape York, with a particular focus on Indigenous people.
The CYRP is in its third year of delivery and has been recognised with the Queensland Premier’s Reconciliation Award (Partnership Category), a High Commendation Award for Innovation, and has been hailed in the media as a ‘nation building project.’

3. How did the initiative solve the problem and improve people’s lives?

The Cape York Region Package (CYRP) is a $260.5 million, five year program of works, jointly funded by the Australian and Queensland Governments on an 80:20 basis. It comprises:
• $200 million to seal priority sections of the Peninsula Developmental Road (PDR).
• $10 million for sealing works on the Endeavour Valley Road (EVR) leading to the Hope Vale Aboriginal community.
• $50.5 million for community works in eight Aboriginal communities in Cape York.
Supporting Document One – CYRP Presentation provides an overview of the CYRP.
The CYRP key objectives and targeted audiences follow:
1. Improved social outcomes for Indigenous and local communities in Cape York by providing better access to health services, employment, education and training opportunities.
2. Upgraded key access roads ensuring they are better able to withstand severe weather conditions.
3. Improved community infrastructure in remote Aboriginal Local Government Authorities.
4. Improved links in the region to support the growth of the hospitality, transport and tourism industries.
5. Improved travelling and safety conditions for motorists.
The PDR:
• The $200 million is being spent on sealing 18 sections of the PDR. By June 2019, the amount of seal will have increased from 28% to 60%. This means a reduced annual maintenance cost / road closure time, improved links in the region, and improved travelling and safety conditions.
• Commencing in 2015, the civil construction companies appointed to deliver the CYRP-funded projects are contracted to meet or exceed three tailored Key Result Areas (KRA):
KRA 1 - Indigenous and non-Indigenous Training and Upskilling
KRA 2 - Implementation of the Indigenous Economic Opportunities Plan
KRA 3 - Local Industry Participation.
• These KRAs have incentivised contract payments. In 2015-16 the targets for KRA1 and KRA2 were well exceeded, with similar results occurring for 2016-17.
“Almost 30 per cent of the contract work awarded to the upgrade has gone to local Indigenous-owned contractors, an estimated tenfold increase in the average involvement of Aboriginal enterprise in most other capital works programs.” The Australian, 2 February 2016.
• On 29 JuIy 2015, TMR partnered with the Cape York Land Council Aboriginal Corporation and Indigenous Traditional Owners (TOs) through the signing of the PDR Priority Agreement (PPA). The PPA allows the State to carry out roadworks on the PDR in full compliance with Native Title and cultural heritage legislation. The PPA mandates benefits for TOs, including the opportunity to work ‘on country’ carrying out cultural heritage work. In 2015 and 2016, Indigenous TOs were engaged for 6316 hours. An Indigenous Land Use Agreement (ILUA) has since been negotiated which includes the provision of workshops for Indigenous businesses, and high school and tertiary scholarships for Indigenous students, the latter being for study in fields related to road construction.
Supporting Document 2 - Channel Seven News segment about the work and achievements on the PDR https://youtu.be/Ilf94HFewsc.
The EVR:
• Road upgrade works on the EVR through to Hope Vale are being completed under a Memorandum of Understanding (MoU) between TMR, with Hope Vale Aboriginal Shire Council (HVASC) as a sub-contractor. The MoU arrangement is providing a valuable opportunity for Indigenous employment and training, and improving HVASC’s construction capability.
• The work is providing a much improved freight route for this Indigenous community which is working hard to ‘Close the Gap’ with its banana growing initiative.
The Community Works:
• Eight Aboriginal communities are benefitting from the delivery of projects such as access road upgrades and improvements to other infrastructure such as barge and boat ramps, water and sewerage). The works are largely being delivered by the community councils thereby providing jobs for residents.

C. Execution and Implementation

4. In which ways is the initiative creative and innovative?

1. Prioritising Indigenous employment and training through the use of tailored Key Result Areas, with incentivised contract payments. Local Indigenous job seekers are, for the first time, carrying out road construction on the Peninsula Developmental Road (PDR) while gaining certified on-the-job training.
2. Partnering with Cape York Land Council Aboriginal Corporation and Traditional Owners (TOs) to create the PDR Priority Agreement (PPA), and Indigenous Land Use Agreement (ILUA). The first of their kind in Queensland, they allow TMR to deliver PDR roadworks more easily in full compliance of Native Title and cultural heritage legislation. The agreements mandate opportunities for TOs to work ‘on country’. The ILUA also provides for workshops for Indigenous businesses, and high school and tertiary scholarships.
3. Awarding contracts to maximise opportunities for Indigenous businesses. In 2016, TMR facilitated a sub-contractor relationship of two inexperienced Indigenous contractors, to successfully deliver a road sealing project on the PDR.
4. The Memorandum of Understanding between TMR and Hope Vale Aboriginal Shire Council (HVASC) is resulting in valuable training opportunities for HVASC’s crew and sub-contractor work for ex-crew.
5. Community infrastructure projects are being delivered in Indigenous communities by Indigenous Councils / residents thereby generating employment and improving living conditions.

5. Who implemented the initiative and what is the size of the population affected by this initiative?

The Queensland Department of Transport and Main Roads (TMR) is responsible for the design, delivery and administration of the Cape York Region Package (CYRP).
Peninsula Developmental Road (PDR) works:
Members of the CYRP Project Team regularly meet with the Principal Contractors to discuss progress against the Key Result Areas. TMR works alongside Cape York Land Council Aboriginal Corporation to ensure the correct Traditional Owners (TOs) are utilised as Cultural Heritage Monitors / Surveyors, and the Queensland Department of Aboriginal and Torres Strait Islander Partnerships to validate Indigenous businesses.
Endeavour Valley Road (EVR) works:
TMR has signed a Memorandum of Understanding with the Hope Vale Aboriginal Shire Council (HVASC) for the provision of road construction and maintenance services to assist in the delivery of the project on the EVR. TMR’s RoadTek unit mentors the HVASC construction crew.
Community infrastructure works:
The community infrastructure works are facilitated by TMR (road and transport infrastructure) and delivered by eight Aboriginal Local Government Authorities within their own communities.
The scope of the CYRP is immense and at a conservative approximation it is benefitting:
• Numerous Indigenous businesses and people who have gained training / employment opportunities.
• The Traditional Owners whose work, through the PDR Priority Agreement, is providing spiritual, physical, social and cultural connection to their country.
• Young Indigenous people through the high school and tertiary scholarships being funded by TMR.
• Nine Indigenous communities in total – through improved community infrastructure and/or access, and employment opportunities.
• Some 18,000 residents of Cape York Peninsula, approximately 60% of whom identify as Indigenous, as well as tourists, freight operators, government service providers, cattle station owners, and mining giant Rio Tinto, through safer, improved travelling conditions on the PDR, and reductions in cost to transport goods and services.

6. How was the strategy implemented and what resources were mobilized?

On 16 January 2014, the Australian Government announced $210 million for improved infrastructure to enhance Cape York’s economy. The Queensland Government raised the total funding figure to $260.5 million. The resulting Cape York Region Package (CYRP) program has had variable TMR staffing levels, supplemented by contractors and specialist consultants as needed. In addition, many hours have been contributed by officers of Cape York Land Council Aboriginal Corporation (CYLC), Traditional Owners (TOs) and senior Department of Transport and Main Roads (TMR) officers, to develop and implement the unique Peninsula Developmental Road (PDR) Priority Agreement (PPA) and PDR Indigenous Land Use Agreement (ILUA). The $260.5 million includes technical (eg. survey, design, construction, cultural heritage) and staffing costs.
$200 million to seal priority sections of the PDR:
Eighteen sections of the PDR were chosen for sealing including because they were the most cost-effective, would reduce the duration of flood-related closures and high annual maintenance costs, and improve safety and overtaking opportunities.
A key desired outcome of the CYRP is to improve social outcomes for Indigenous, and other communities, in Cape York. To this end, three tailored Key Result Areas (KRA), with incentivised contract payments, were developed and used for the major 2015 project. The results were so successful, they are continuing to be used for the CYRP’s duration, and the Australian Government is considering trialling their use on other road construction programs.
Prior to the 2015 / 2016 / 2017 construction seasons, the CYRP project team has organised a ‘meet and greet’ session in Cape York, enabling potential contractors and Indigenous and/or Cape York businesses, to discuss work opportunities.
Progress against the KRAs is recorded monthly on an Excel database, with the final results evaluated at the end of each construction season. Supporting Document One includes information about the outstanding Indigenous-related results achieved through the KRAs in 2015. Information about the 2016 KRA results can be made available. In early 2016 and early 2017 officers from relevant Queensland and Australian Government agencies met to review learnings from the contract models used. The KRA results for 2015 and 2016 have been evaluated and used to inform the 2017 KRAs and monetary incentives.
On 6 February 2015, a United Number 1 Claim over Cape York was registered by the National Native Title Tribunal (NNTT). Senior TMR officers began discussions with the CYLC, which represents the TOs for the claim. The resulting PPA was negotiated and signed in July 2015. The PPA mandates TOs to work ‘on country’ carrying out cultural heritage surveying and monitoring. To date, some 6,316 hours have been accumulated, and Indigenous artefacts identified and preserved. The PPA allowed roadworks on the PDR to continue while TMR and CYLC negotiated the PDR ILUA. In October 2016, in a first for Queensland, the TOs and named Applicants for the claim authorised the ILUA, and it has been lodged with the NNTT for registration.
$10 million for sealing works on the Endeavour Valley Road (EVR) through to Hope Vale
In September 2014, the EVR Memorandum of Understanding was signed between Hope Vale Aboriginal Shire Council (HVASC) and TMR. The sealing works began in 2014, with over 7km of the road leading to Hope Vale now sealed through this partnership. The PDR KRAs have been used to measure the results, enabling consistent measurement across the two CYRP components.
$50.5 million for Community Works
The Mayors of eight Indigenous communities consulted their community, council members and management, over five months, to determine the priority projects. These projects are in various stages of delivery, with Councils required to report on their progress to the CYRP Project Team.

7. Who were the stakeholders involved in the design of the initiative and in its implementation?

In 2014, Department of Transport and Main Roads (TMR) officers compared road upgrade options and infrastructure scenarios for the use of the $260.5 million. The result: funding was approved to seal an initial eleven road sealing projects on the Peninsula Developmental Road (PDR).
TMR officers acted on the challenge to positively influence the economic and employment prospects of Indigenous people and businesses, and other Cape York businesses through the PDR works. TMR has achieved this through the development of three Key Result Areas (KRA) with monetarised incentives, and the use of various procurement delivery models. TMR acted in consultation with a range of government partners on this approach:
• Federal Department of Infrastructure and Regional Development
• Federal Department of Prime Minister and Cabinet
• Queensland Treasury
• Queensland Department of Aboriginal and Torres Strait Islander Partnerships
• Queensland Department of Local Government, Infrastructure and Planning (DLGIP).
In 2015 and 2016, four private sector Principal Contractors, including an Indigenous-owned business local to Cape York, and TMR’s commercial arm, RoadTek, delivered the eleven projects, with the aid of Indigenous and Cape York-based workers and sub-contractors. In 2017 and 2018, seven more projects are being delivered.
Training and employment organisations have worked with the project delivery teams to provide suitable training for new entrant Indigenous and non-Indigenous trainees, in order to ensure they are securing qualifications that will assist them in obtaining secure, sustainable employment.
The Endeavour Valley Road works began as a separate initiative to the CYRP, with discussions between Hope Vale Aboriginal Shire Council (HVASC) and TMR leading to the signing of a Memorandum of Understanding in September 2014. The project is being implemented by RoadTek, with HVASC as a sub-contractor.
Indigenous councils and TMR are partners in implementing the community works.

8. What were the most successful outputs and why was the initiative effective?

Sustainable Developmental Goals - Decent work and economic growth; and Industry, Innovation and Infrastructure
1. The Cape York Region Package (CYRP) is promoting inclusive and sustainable economic growth through the successful use of innovative Key Result Areas (KRA) with monetarised incentives, to maximise employment, education and training opportunities for local Indigenous people and Cape York businesses. Quality employment and education opportunities in turn create improved social outcomes.
In 2015 and 2016, the targets for ‘KRA 1 - Indigenous and non-Indigenous Training and Upskilling’ and for ‘KRA 2 - Implementation of the Indigenous Economic Opportunities Plan’, were exceeded. See Supporting Document One.
2. Local Indigenous job seekers are, for the first time, carrying out road construction on the PDR while gaining certified on-the-job training, and Indigenous businesses are being afforded unprecedented opportunities.
On 30 November 2016*:
• 77 Indigenous workers, including 31 trainees, were employed = 28% of the workforce.
• 18 Indigenous businesses / Joint Ventures were engaged.
In 2015, at the peak period of construction*:
• 80+ Indigenous workers, including 22+ trainees, were employed = “Almost 30 per cent of the contract work awarded to the upgrade has gone to local Indigenous-owned contractors.” The Australian, 2 February 2016.
• 15 Indigenous businesses were engaged.
* The amount of people employed at a point in time depends on the type of work and stage of construction.
3. In 2015, TMR partnered with Indigenous Traditional Owners (TOs) through the PDR Priority Agreement (PPA) to achieve economic outcomes for Indigenous people. The PPA has been the catalyst for TOs to work ‘on country’ with 6316 working hours recorded in 2015 and 2016 for cultural heritage activities. In May 2016, the significance of the PPA, in helping to ‘Close the Gap’ through training and employment opportunities, was recognised with the Queensland Premier’s Reconciliation Award (Partnership Category).
4. The CYRP is building vital infrastructure. The sealing works on the Endeavour Valley Road are improving freight haulage for Hope Vale’s banana industry. The sealing works on the PDR are improving all weather access to Cape York, and paving the way for a year-round economy. By June 2019, the amount of seal will have increased from 28% (147km) to 60% (318km).
5. Community infrastructure, including improved road access, is being built in eight Indigenous communities, meaning jobs for local people and improved living conditions.

9. What were the main obstacles encountered and how were they overcome?

1. In 2015, the target for Key Result Area (KRA) 2 was exceeded by over 1600%. Following a multi-government agency review on a ‘without precedent basis’ the KRA 2 for the 2016 PDR projects was adjusted upwards with the target rising from 1.5% to 15% of the Contract Direct Cost Amount. This was done to ensure the lead companies contracted to deliver the PDR road sealing projects continued to strive to employ as many Indigenous businesses as possible. This has proved successful with an increase of 1.5% in 2016.
2. Indigenous businesses are able to register their details on Queensland’s ‘Black Business Finder”. With the growing opportunities for Indigenous businesses in 2015 and 2016, there were claims that some non-Indigenous businesses were claiming to be Indigenous in order to gain work. In response, the Department of Transport and Main Roads (TMR) is working with the Department of Aboriginal and Torres Strait Islander Partnerships to investigate the claims and ensure legitimate Indigenous businesses are being engaged.
3. 2015 proved a year of firsts with the development and signing of the PDR Priority Agreement (PPA), and the formulation and implementation of untried KRAs. In response to some scepticism and misinformation, in late 2015 TMR produced and widely distributed a range of fact sheets, including via http://www.tmr.qld.gov.au/Projects/Name/C/Cape-York-Region-Package-Peninsula-Developmental-Road. They explained the need for the PPA and the KRAs. In 2016, TMR held a series of industry and community briefings in Cape York and Cairns, to talk about the 2015 results and learnings, and the year of construction ahead. Similar briefings are scheduled for 2017 and further fact sheets are being developed.
“The feedback has been positive and full of praise for the way that TMR has conducted the information sessions.” Andrew Clarkson l Senior Advisor l Department of Prime Minister and Cabinet (June 2016).

D. Impact and Sustainability

10. What were the key benefits resulting from this initiative?

The Department of Transport and Main Roads’ (TMR) vision is ‘Connecting Queensland – Delivering transport for prosperity.’ At the end of the five year Peninsula Developmental Road (PDR) sealing program, the percentage of bitumen will have risen from 28% to 60%. The positive impacts of this improvement in services can be measured by:
• Improved travelling conditions for motorists and freight
• Improved connectivity between Cape York communities
• Reduced costs to transport freight to Cape York through the reduced reliance on more expensive sea and air freight travel.
• reduced time and cost to maintain and repair gravel sections of the PDR. Traditionally, some $20 - $25 million has been spent annually to maintain and rehabilitate gravel sections. In addition, in the last four years, approximately $18.2 million has been spent on Natural Disaster Relief and Recovery Arrangements (NDRRA) emergent works and $67.1 million NDRRA restoration works. The more bitumen, the less need for these annual works and scarce gravel resources.
In May 2016, Mr Neil Scales OBE, Director-General of TMR accepted the Queensland Premier’s Reconciliation Award on behalf of TMR for the partnership formed with Cape York Land Council and Traditional Owners (TOs) to develop the PDR Priority Agreement (PPA) and the subsequent Indigenous Land Use Agreement (ILUA). The annual Awards recognise and celebrate the excellent work and positive outcomes of reconciliation initiatives to help ‘Close the Gap’.
• ‘Often when you think of Reconciliation, your mind turns to high level policy and concepts far removed from the dirt and dust of country. At TMR, we believe in a slightly more practical approach. Our work may not be high brow, but it is where the rubber hits the road when it comes to tangible and lasting benefits.’
A measure of the PPA’s success is TOs working ‘on country’ in 2015 and 2016 for 6316 hours. The ILUA is with the National Native Title Tribunal for registration. Once registered, it will continue indefinitely unless terminated by the parties. Elements of the ILUA’s Indigenous Economic Participation Plan (IEPP) are already being implemented. The first round of submissions for Indigenous high school and tertiary scholarships is underway, and a prequalification and capability building workshop was held in November 2016. The IEPP also provides for sub-contracting opportunities, and a transition plan to enable accredited Indigenous businesses to undertake future routine maintenance works on the PDR, post implementation of the Cape York Region Package (CYRP).
The Key Result Areas (KRA) are quantitatively measured on a monthly basis via an Excel spreadsheet. Bruce Martin, a Wik man from Cape York, writes about the positive benefits of upgrading the PDR and the economic development opportunities being afforded to his people. (Letter of Reference 1).
The Community Works projects were chosen by the communities. Mayor Ralph Kendall of Pormpuraaw Aboriginal Shire Council writes about the positive results of the resulting access road works. (Letter of Reference 2).
A measure of success of the Endeavour Valley Road (EVR) sealing works is Hope Vale community members sub-contracting to the project as machinery operators.

11. Did the initiative improve integrity and/or accountability in public service? (If applicable)

The Queensland Government has a vision that Aboriginal people and Torres Strait Islander peoples participate fully in Queensland’s growing economy through skilling, training and employment, and business growth and development.
Moving Ahead is the new whole-of-government strategy (2016 – 2022) to improve economic participation outcomes for these people. Moving Ahead highlights that economic participation is everyone’s responsibility and focuses on forming partnerships with industry and growth sectors to drive sustainable improvements. Moving Ahead includes 27 actions to drive specific improvements in economic participation outcomes, which are aligned with five priorities. Priority Three is ‘Build our partnership with industry’.
“Industry is a key partner with significant resources and expertise to contribute to closing the gap in economic participation outcomes for Aboriginal and Torres Strait Islander Queenslanders.”
Priority 3 includes the ‘Case Study: Peninsula Developmental Road’. “The successful tenderer for the 2015-16 Mein Deviation pave and seal contract on the Peninsula Developmental Road has implemented an Indigenous Economic opportunities plan which includes on-the-job training and a Certificate III in Civil Construction, and specific plant hire opportunities for Indigenous businesses. Governance of the project is provided by the Cape York Region Package Board and the Cape York Region Package Taskforce, which includes representatives from federal and state governments, and stakeholders from Cape York.” www.datsip.qld.gov.au (4 March 2017)
The showcasing of the Department of Transport and Main Roads (TMR) innovative approach to the delivery of this project, and subsequent projects on the PDR, affirms TMRs integrity in proactively honouring the Queensland Government’s vision.
The Governance framework for the delivery of the $260.5 million Cape York Region Package (CYRP) is outlined in the case study. Senior members of the CYRP Program Management Team meet with the Board on a quarterly basis to document progress, thereby ensuring accountability.
One of the fundamental elements of the PDR Priority Agreement and the Indigenous Land Use Agreement (ILUA) is that only the Traditional Owners (TOs) for any particular section of the PDR may speak for that section (‘to speak for country’). As a consequence, TMR ensures that arrangements with the TOs for the management and protection of their cultural heritage has taken place ahead of works.
A committee of six TOs has been appointed to monitor the implementation of the ILUA’s Indigenous Employment Participation Plan, and TMR’s environmental management and cultural heritage compliance. This ensures TMR is accountable to the TOs in the delivery of the PDR works.

12. Were special measures put in place to ensure that the initiative benefits women and girls and improves the situation of the poorest and most vulnerable? (If applicable)

The training, employment and business opportunities have been offered to, and taken up by, both Indigenous men and women.
Two Indigenous young women worked as Trainees on the Mein Deviation project on the Peninsula Developmental Road (PDR) in 2015 and 2016, receiving on-the-job training, and largely completing a Certificate III in Civil Construction. When the Mein Deviation project was finished, they were assigned to other projects by their training provider to continue their training and studies.
Indigenous women and men have worked ‘on country’ as cultural heritage surveyors and monitors on the PDR.
Two of the six Traditional Owners (TOs) who make up the PDR Indigenous Land Use Agreement (ILUA) Project Committee are women, as is one of two Department of Transport and Main Roads (TMR) representatives.
The high school and tertiary scholarships, being made available through the PDR ILUA, are open to both young Indigenous women and men.
The opportunities being afforded to Indigenous women and men through the PDR works has been recognised with the Queensland Premier’s Reconciliation Award (Partnership Category) and showcased in the Queensland Government’s Moving Ahead strategy for improving economic participation outcomes for Indigenous people.